U.S Inflation Falls to 6.4% in January as per Recent Release

• JPMorgan Chase & Co.’s economic experts predicted a drop to 6.2% in January.
• The rate will be a major factor for Federal Reserve policymakers regarding interest hike.

Near the conclusion of last year, inflation in the United States began to moderate. As the CPI data has been refined over the previous several months, this tendency has been confirmed once again. The 7.1% inflation rate recorded in November was below market forecasts. This trend continued in December when the rate fell to 6.5%. So, the winning run continues.

The long-awaited January employment report from the U.S. Bureau of Labor Statistics has finally been issued. Inflation has fallen to 6.4%. The stated number, however, exceeds expectations.

JPMorgan Chase & Co.’s economic experts predicted a drop to 6.2% in January from the 6.5% recorded in December. Economists at Morgan Stanley, on the other hand, predicted a 0.4% gain when comparing the two numbers.

All Eyes Next on Fed Over Interest Rate

Experts predicted that the market would react favorably to a reading of 6% to 6.3%. Actually, it said that stocks would suffer if the figure were higher than 6.4%. Considering the most recent number, investors might anticipate a little pullback in stock prices. If this trend continues, it will likely affect Bitcoin and the whole cryptocurrency market. The price of Bitcoin and most altcoins are trading in green following the news.

The most recent data set from the Bureau of Labor will be a major factor for Federal Reserve policymakers to consider as they ponder the timing of the next interest rate increase. Market participants anticipate the Federal Reserve to raise the benchmark interest rate twice more from its current range of 4.5 percent to 4.7 percent.

However, these actions are supposed to have a positive effect on the economy in the long run. Federal Reserve Chair Jerome Powell has said that he anticipates substantial decreases in inflation around the year 2023.